Basic contents of Decision 73/2014/QD-TTg regulating the list of scrap allowed for import as manufacturing materials

08/07/2016

   Basis for promulgation of the decision

   The Law on Environmental Protection (LEP) 2014 takes effective from 1 January 2015 with Article 76 regulating environmental protection in importing of scraps. Accordingly, organizations and individuals importing scraps must meet the    requirements regulated in clause 2, Article 76 and the imported scraps must meet regulations of clause 1 Article 76 on the list of scraps allowed for import promulgated by the Prime Minister and must meet the national environmental technical regulations promulgated by the Ministry of Natural Resources and Environment (MONRE). Based on this, the Prime Minister approved Decision No. 1338/QD-TTg dated 11/8/2014 assigning agencies to be responsible for drafting guiding documents of the laws enacted by the National Assembly Tenure XIII at the 7^th meeting. Of which, MONRE takes lead and collaborates with other ministries, sectors and localities to develop the draft Prime Minister’s Decision on the list of scraps allowed for import.

The LEP 2014 regulates in detail organizations and individuals importing scraps and responsibility for imported scrap bonding

   Regarding environmental protection and management of scrap trade and import, the LEP 2005 and guiding documents play positive roles in state management of environmental protection and ensuring the implementation of legal regulations on environmental protection of these activities. However, one of the arising difficulties is environmental protection regulation application on the buying and selling scraps to manufacturing enterprises and enterprises in the free tax zone compared to other enterprises.

   On the other hand, the industrialization and urbanization process of the country have increased the demand of manufacturing materials and promoted the manufacturing and recycling technologies; the import demand of scraps into Viet Nam has increased in recent years in terms of numbers and types. Accordingly, environmental risks from the import of scraps have also increased. The LEP 2014 is enacted with detailed regulations on the requirements of organizations and individuals in scrap import and responsibility of imported scrap bonding, which are reflected in the Decree on waste management and scrap prepared by MONRE. At the same time, the LEP 2014 also regulates the mandate of the Prime Minister in promulgating the list of scraps allowed for import and assigns MONRE to develop the national environmental technical regulations on imported scraps.

   As a result, the promulgation of Decision No. 73/2014/QD-TTg dated 19/12/2014 by the Prime Minister regulating the List of scraps are allowed for import to be used as manufacturing materials is necessary meeting the economic development demand and environmental protection.

   Basic content of the decision

   Decision No. 73/2014/QD-TTg dated 19/12/2014 by the Prime Minister regulating the List of scraps allowed for import as manufacturing materials consists of 5 Articles and 1 Annex:

- Article 1 regulates the List of scraps allowed for import as manufacturing materials.

- Article 2 regulates 36 scraps allowed for import to be used directly for domestic production and do not apply for temporary re-export activities, transshipment and transit of scraps in the territory of Viet Nam.

- Article 3 regulates the responsibilities of MONRE in leading and collaborating with other relevant ministries and sectors to develop and promulgate the national environmental technical regulations for 36 scraps allowed for import to be used as manufacturing materials.

- Article 4 regulates on the effectiveness of the Decision from 5 February 2015.

- Article 5 regulates on responsibilities of MORNE in guiding, supervising and monitoring the implementation of this Decision.

- The Annex of this Decision is the List of 36 craps allowed for import used as manufacturing materials and goods import code (HS) according to the regulations of the Ministry of Finance promulgating the Table of preferential export tax and import tax for the list of goods that are subject to taxation.

LIST OF SCRAPS ALLOWED FOR IMPORT AS MANUFACTURING MATERIALS

(According to Decision 73/2014/QD-TTg dated 19/12/2014 by the Prime Minister)

No.	Scraps	HS code
1	Plaster	2520	10	00
2	Small particle slag (sand slag) from iron or steel metallurgy industry.	2618	00	00
3	Mixed chemical elements used in electronics in plate, thin layer or similar types.	3818	00	00
4	Scraps and pieces of plastics from polymer ethylene (PE): porous type, non-hard.	3915	10	10
5	Scraps and pieces of plastics from polymer ethylene (PE): Other type.	3915	10	90
6	Scraps and pieces of plastics from polymer styrene (PS): porous type, non-hard.	3915	20	10
7	Scraps and pieces of plastics from polymer styrene (PS): Other type.	3915	20	90
8	Scraps and pieces of plastics from polymer vinyl chloride (PVC): porous type, non-hard.	3915	30	10
9	Scraps and pieces of plastics from polymer vinyl chloride (PVC): Other type.	3915	30	90
10	Scraps and pieces of plastics from other types.	3915	90	00
11	Discarded paper or cardboard (scrap and pieces): kraft paper or kraft cardboard or undyed cardboard.	4707	10	00
12	Discarded paper or cardboard (scrap and pieces): other paper or cardboard made mostly from paper pulp collected from the chemical process that are white dye, undyed fully.	4707	20	00
13	Discarded paper or cardboard (scrap and pieces): other paper or cardboard made mostly from paper pulp collected from the mechanical process (e.g, paper for newspaper, magazine or similar publications).	4707	30	00
14	Discarded paper or cardboard (scrap and pieces): other type, including unclassified scraps and pieces.	4707	90	00
15	Silk scrap (including cocoon unsuitable for silk reeling, scrap fiber and recycled fiber).	5003	00	00
16	Glass piece and glass scrap and other pieces; glass in block.	7001	00	00
17	Scrap and pieces of cast iron.	7204	10	00
18	Scrap and pieces of alloy steel: stainless steel.	7204	21	00
19	Scrap and pieces of alloy steel: other type (different from stainless steel).	7204	29	00
20	Scrap and pieces of iron or tin coated steel.	7204	30	00
21	Scrap and pieces of iron or steel: hobbed, planed, chop, scale and bavia iron shavings, not press into blocks or in package, bar, cluster.	7204	41	00
22	Scraps and other pieces of iron or steel: other type.	7204	49	00
23	Re-melt foundry pig (iron, steel, cast iron) scrap.	7204	50	00
24	Copper scrap and pieces	7404	00	00
25	Nickel scrap and pieces.	7503	00	00
26	Aluminum scrap and pieces.	7602	00	00
27	Zinc scrap and pieces.	7902	00	00
28	Tin scrap and pieces.	8002	00	00
29	Wolfram scrap and pieces.	8101	97	00
30	Molybdenum scrap and pieces.	8102	97	00
31	Magnesium scrap and pieces.	8104	20	00
32	Titanium scrap and pieces.	8108	30	00
33	Zirconium scrap and pieces.	8109	30	00
34	Antimony scrap and pieces.	8110	20	00
35	Manganese scrap and pieces.	8111	00	00
36	Chromium scrap and pieces.	8112	22	00

Note: HS code and scrap names in this list are used according to Circular No. 164/2013/TT-BTC dated 15/11/2013 by the Ministry of Finance promulgating the Table of preferential import and export tax for goods that are subject to taxation.

   Conclusion

   To ensure the limitation of environmental risks in scrap import activities, MONRE requests the Prime Minister to assign MONRE in collaboration with the Ministry of Industry and Trade, Ministry of Finance to regularly review, study and report to the Prime Minister for other scraps that have economic values in recycling, reusing and cause less negative impacts on the environment.

   Together with the promulgation of this Decision, the system of regulations on environmental protection in scrap import has established and there has been a significant difference compared the regulations of the LEP 2005, in order to enhance the effectiveness and efficiency of environmental protection and management in scrap import and create favorable conditions for manufacturing demands of enterprises. In addition, the regulation relating to environmental protection in scrap import according to the LEP 2014 is appropriate with international regulations and conventions that Viet Nam is a party to, particularly the regulation effectively supports the implementation of the Basel Convention on the Control of Transboundary Movements of Hazardous Wastes and Their Disposal.

Nguyen Duc Hung, Deputy Director

Pollution Control Department

Vietnam Environment Administration